AnCatt Conductive Polymer NanoDispersion and Anti-Corrosion Coating Technology Investor Deck

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Current coating technologies utilize anti-corrosion pigments in the primer to protect metals from corrosion. The most effective anti-corrosion pigment is the highly toxic and carcinogenic hexavalent chromium (Cr6+), which refers to chemical compounds containing the element chromium in the +6 oxidation state. The toxicity of Cr6+ became well-known to the general public through the 2000 Oscar- nominated film “Erin Brockovich.” The film presented the real-life story of hexavalent chromium leakage which contaminated both groundwater and drinking water in the small California desert town of Hinkley, leading to the largest legal settlement in the U.S. history. Hexavalent chromium is a carcinogen that can cause severe malfunctions of the human body, contaminate water, soil and air, and harm plants and animals alike. A 2010 study by the Environmental Working Group (EWG) discovered that the Erin Brockovich chemical, Cr6+, was present in the tap water of 31 of the 35 U.S. cities sampled, and 25 of them were at a level above the California-proposed safe maximum. Cr6+ has troubled the U.S. military for over several decades; hexavalent chromium has been named the No. 1 toxic enemy of the U.S. Military. In terms of protecting their mission-critical assets in the military and the aerospace industry, Cr6+ are still in wide usages without and effective alternative been identified. The regulations are tightening. Zinc and/or zinc oxide are current environmentally compliant industry standard chromium alternatives. However, zinc cannot protect aluminum (a major material for the aerospace industries) or galvanized steel and is less effective in severely corrosive environments. Zinc price is expecting to increase again, and according to figures from the United States Geological Survey (USGS), with the current levels of usage, the known zinc reserve will be depleted around 2020. Over 50% of zinc has been used to protect metals from corrosion either through the galvanization process or as the sacrificial anti-corrosion pigment in coatings. The world has long been diligently searching for an effective Cr6+ alternative pigment for corrosion protection. Conductive polymers have been regarded as an exciting environmentally friendly alternative to hexavalent chromium pigments since the discovery of the Polyaniline (PAn) anti-corrosion effect in the early1980s. That PAn can be used as a corrosion inhibitor was also stated in the 2000 Nobel Chemistry award publication. Many companies, organizations, and universities have invested significant resources into this research, and hundreds of research papers and patents have been published. Although many researchers have shown some positive results, the development of commercial products has been a long and arduous path in the past 30-plus years. To meet the demand for an environmentally friendly yet high-performance anti-corrosive, Ancatt Co. has successfully developed Conductive Polymer Nanodispersion (CPND).

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Imagine A World Without Corrosion

- Sue Wang, AnCatt

Corrosion has long been believed as a non-stoppable natural force: silent but powerful

The direct corrosion cost trillions of dollars annually, or 3-5% of a country’s GDP Worldwide

The direct corrosion cost is 16X of total annual major weather related disasters including: hurricanes, tornadoes, tropical storms, floods, fires, droughts, and freezes

~30% of accidents

disrupting production in the oil & gas industry are corrosion related

~800 corrosion related

water main breaks in the U.S. everyday

~$3 Billion associated

annual water lost

~$4.1 Billion in electricity

waste

Golden Gate Bridge

Using environmentally complaint zinc based low VOC paint: hire a 50

people crew to continuously paint the bridge everyday

Energy Production

Transportations

Energy Storages

Chemical Processing

Corrosion has been named the No. 1 enemy of the oil and gas industry

Marine Life

USS MISSOURI

Was the site of the surrender of the Empire of Japan which ended World War II

Cutty Shark

The conservation project was taking place to halt the corrosion of the famous ship's iron framework

Current Anti-Corrosion Coating Technologies

• Hexavalent Chromate (Cr6) = most effective-highly toxic and carcinogenic -regulations are tightening

• Zinc/zinc oxide = environmentally compliant -still a marine pollutant

• -less effective-limited sacrificial life-cannot protect aluminum, etc. -facing depletion after 2027

• Long been seeking an effective Cr6 Alternative

Current Anti-Corrosion Coating Technologies

Cr6 leakage led to the largest legal settlement in the U.S. history and Hollywood films

Regulations on Cr6

• 2016: EU REACH requires all Chromic acids to Sun Set (Authorization & Restriction)

• 2012: EPA lowered allowable Cr6 in coatings once again • 2011: DoD Defense Federal Acquisition Regulation

Supplement to minimize Cr6• 2007: EU End-of-Life Vehicle (ELV) prohibited Cr6• 2006: EU RoHS prohibited Cr6 in electric & electronic• 2006: OSHA reduce Cr6 ten-fold from 52 to 5

micrograms-per-cubic-meter

Dec. 2010 Washington Post

Cr6 Found in Tap Waterof Most U.S. Cities

31 of 35 surveyed cities

25 cities Cr6 content above safe maximum

zhu

What should we use to continue the corrosion

protections?

Zinc is Running Out

In the near future, Zinc has been depleted

22

CORROSION HAS LONG BEEN BELIEVED AS A NON-STOPPABLE NATURAL FORCE: SILENT BUT POWERFUL

THE DIRECT CORROSION COST TRILLIONS OF DOLLARS ANNUALLY, 3-5% OF A COUNTRY’S GDP WORLDWIDE

IN THE NEAR FUTURE, ZINC HAS BEEN DEPLETED

WHAT SHOULD WE USE TO CONTINUE TH CORROSION PROJECTIONS?

28

HUMANITY IS

IN A WAR

WITH CORROSION

23

An Award-Winning Solution (Patent Pending)

24

Inherently Conductive Polymers (ICP) , The HOLY GRAIL

Have Been Regarded as an Exciting Alternative to Cr6, After 35 years of Worldwide Research EffortsThere had no successful product

25

ICP Nano VS. Micro=

Lower Cost

+

Higher Effective

Wet Adhesion Test After 8,372 hrs of Salt Fog

-ASTM D 3359 (Tape Adhesion): 5A (Best possible score)

-ASTM D 4541 (Pull-Off Adhesion): 564 psi (Very Good According to SSPC Good Paint Practice)

Front and back comparison of steel panels

Accelerated Corrosion Tests

1,000 hrs Front 5,000 hrs Front 8,372 hrs Front

1,000 hrs Back 5,000 hrs Back 8,372 hrs Back

CPND coating on the Front with scribe line

vs.

Acrylic coating on the back without scribe line

Provided by KTA, an

independent corrosion test

lab in the U.S.; 5,000 hrs is

maximum test hour according

to ASTM standards

Corrosion Test – Salt Fog (ASTM B 117)

• Corrosion Test Results:

Hours Metal Blistering RustingUndercutting (mm)

Continue

P1 13,740 CRS* 10 10- 2-7 Yes

P2 13,740 CRS* 10 10- 1-9 Yes

P3 12,740 CRS* 10 10- 1-5 Yes

P4 12,740 CRS* 10 10- 1-4 Yes

P5 8,372 CRS* 10 10- 2 (Avg.) Yes+

P5 12,740 CRS* 10 10- 2 (Avg.) Yes

P6 8,372 CRS* 10 10- 3 (Avg.) Yes+

P6 12,740 CRS* 10 10- 3 (Avg.) Yes

P9 10,740 Aluminum 10 10- 0 Yes

* CRS: Cold Roll Steel+ This Panels where scratched off the surface corrosion product at 8,372 hrs then been put back to the salt fog chamber for continue testing- Discoloration was founded on this panel

World Record

13,740 hrs (2+ years) accelerated corrosion tests, still

No rusting or blistering

Industry Recognitions

AnCatt's environmentally friendly anti- corrosion coating platform can provide unprecedented corrosion protection for all sorts of metals

The Magazine of the National Society of Corrosion Engineers (NACE), July, 2013

Industry Recognitions

Independent corrosion tests have shown this is a successful conductive polymer-based anti-corrosion coating technology and the firstnon-chromate coating that has out-performed hexavalent chromate coatings. It is also the first heavy-metal-free heavy-duty anti-corrosion coating technology.

International Magazine For the Painting & Coating Industry, PCI,

October, 2013

Market Analysis

×Toxic heavy-metals = phasing out by regulations

×Zinc = less effective + facing depletion (2027)

×Other heavy-metal free technologies = too weak

AnCatt coating holds the promises to revolutionized the anti-corrosion

coating markets.

- Chemical Informer

iBarrierTM Is The Futurefor All Metal Structures

Verrazano Narrows Bridge NY/NJ

- High performance lead based paint- Repaint every 9-10 years- Last repaint job estimated $40MN for five year (1998-2003)- Require lane closures- Using airtight enclosures work area and vacuum hazardous lead-based paint chips- A follow up 3-year clean and repaint job cost $32 million, total $72MN- complete in 2008, total 10 years-Next repaint job received lowest bid of $235,728,000 on June 28, 2012- How much can 6X longevity Save?

Verrazano Narrows Bridge NY/NJ

- High performance lead based paint- Repaint every 9-10 years- Last repaint job estimated $40MN for five year (1998-2003)- Require lane closures- Using airtight enclosures work area and vacuum hazardous lead-based paint chips- A follow up 3-year clean and repaint job cost $32 million, total $72MN- complete in 2008, total 10 years-Next repaint job received lowest bid of $235,728,000 on June 28, 2012- How much can a coating that last 6X longer Save?

Interest Rate 0% 3.2% (inflation)

60 Year Savings $1.4 Billion $4.5 Billion

Annual Savings $23 Million $75 Million

- Federal Highway Trust Fund Went Bankrupted in 2014- Still 61,000 structurally deficit dangerous bridge need to be repaired- The U.S. Infrastructure funding gap expects to grow into $3.6 trillion by 2020

Infrastructure Funding Crisis

Photo: The Arlington Memorial Bridge, Washington, D.C.

June 2015

A Traditional 2 to 3 Layer System

Manufactured and Applied in the Traditional Ways: Spray, Brush, Roller, etc.

Value Proposition

Protective coating reaching new heights in sustainability

and performance

- Industrialcoatingworld.com

6X Longevity

Less than ½ thickness

Heavy-Metal Free

Self-Healing

Surface Tolerant

Green . Reliability . Fuel Efficiency . Cost Reduction

Market Size - $30B

Target Markets: Oil/Gas/Energy/Power, Aerospace, Automobile, Industrial/machinaries, Marine, Infrastructures, DefenseMarket Growth Rate: 4.5%Competition: None (No current technology is capable to compete)

Award to move high impact breakthrough beyond incremental change & make an impact at a system-wide level

AnCatt founder having breakfast with Astronaut Cady Coleman at the Kennedy Space Center while receiving the LAUNCH Award,

January, 2015

Globally, 1 Ton of SteelTurning into Rust, Every 90 Second

The Energy Used to Make 1 Ton of SteelCan Power Avg. U.S. HouseholdFor 3 Months

To Produce One Ton of Steel

Will Emit 1.8 Ton of CO2, Therefore

To Produce Replacement for Corroded Steels

Emit 748 Million Ton of CO2 Annually

Painting Bridges Caused Traffic Congestions,

Emit 80.3 Million Tone of CO2, Annually

Concrete Production is the No. 1 Source for

CO2 Emission, Steel Rebar Corrosion is the

No. 1 Cause for Concrete Failures

Imagine a World without Corrosion- A much safer place where everything last much longer

Thank You!

2000 Nobel Chemistry Award-Winning Material

46

Conductive Polymers Applications

- Anti-Corrosion Coating / Sealant

- Conductive Ink / Toner / Adhesives

- Conductive Fiber / Cloth

- Electromagnetic Interference Shielding

- Electrostatic Dissipation Coating

- Sensors / Bio Sensors

- Batteries

- Etc.

?AnCatt Inc.Web: www.ancatt.comEmail: ac_info@ancatt.comPhone: (302)533-6533Newark, DE, 19711

The future of Anti-Corrosion Coatings

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